What was the total amount of member distributions for Hyper Kidz as of December 31, 2023?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| BALANCE, DECEMBER 31, 2019 | $ | (24,490) | $ | (15,010) | $ | (39,500) |
|---|---|---|---|---|---|---|
| Member distributions | (100,386) | (100,386) | ||||
| Net income | 110,241 | 110,241 | ||||
| BALANCE, DECEMBER 31, 2020 | (14,635) | (15,010) | (29,645) | |||
| Member contributions | 1,800 | 1,800 | ||||
| Advances to affiliates, net | (163,377) | (163,377) | ||||
| Net income | 46,173 | 46,173 | ||||
| BALANCE, DECEMBER 31, 2021 | 33,338 | (178,387) | (145,049) | |||
| Member distributions | (30,000) | (30,000) | ||||
| Advances to affiliates, net | 1,468 | 1,468 | ||||
| Net income | 52,292 | - | ||||
| BALANCE, DECEMBER 31, 2022 | $ | 55,630 | $ | (176,919) | $ | (173,581) |
**FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 BOOMER
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total member distributions as of December 31, 2023, was $(138,866). This means that Hyper Kidz distributed $138,866 to its members during the year.
Member distributions represent payments made to the owners or members of the LLC from the company's profits or capital. These distributions reduce the company's equity and are a way for the owners to receive a return on their investment. The FDD also shows member distributions for 2022 at $(30,000).
A prospective franchisee should consider the history of member distributions when evaluating the financial stability and profitability of Hyper Kidz. While distributions can be a positive sign of profitability, it's important to assess whether the company retains sufficient earnings for future growth and operations. Reviewing the company's balance sheets and statements of cash flow can provide further insights into its financial management practices.